just about to buy...

james3333

good idea or bad idea in general?
also, i have been offered 2 ways of buying and i would like to know which is the best way and why!!?
the house is 155k new build and my part ex is 115k
i have been offered to buy it at 140k due to my haggling!
now, they have said i can buy it for 140k and get 115k for mine OR i can buy it for 155k and get 130k for mine.
is it just stamp duty i can benefit from buying at the 'lower' price?

cheers

IveSeenTheLight

james3333 wrote: »

good idea or bad idea in general?

My personal opinion, it's a good idea.
Owning your own property will likely be a good decision.
Of course there are always exceptions

james3333 wrote: »

is it just stamp duty i can benefit from buying at the 'lower' price?

cheers

There are other benefits from buying lower i.e. EA's fee (if percentage baseD)

james3333

IveSeenTheLight wrote: »

My personal opinion, it's a good idea.
Owning your own property will likely be a good decision.
Of course there are always exceptions



There are other benefits from buying lower i.e. EA's fee (if percentage baseD)

thanks for this, any other points to mention when buying it at the lower or higher price??? could it affect resale value in future ( anyone can check how much it sold for on that land registry website for example)??

HappyMJ

james3333 wrote: »

good idea or bad idea in general?
also, i have been offered 2 ways of buying and i would like to know which is the best way and why!!?
the house is 155k new build and my part ex is 115k
i have been offered to buy it at 140k due to my haggling!
now, they have said i can buy it for 140k and get 115k for mine OR i can buy it for 155k and get 130k for mine.
is it just stamp duty i can benefit from buying at the 'lower' price?

cheers

I would go for the higher prices. It'll cost you £150 in duty more but future purchasers of your property will see you have paid £155,000 for it. The mortgage company will also base mortgage offers on £155,000. It may not make much difference but I think it will be easier to sell later on. The figures from Zoopla, Mouseprice, etc will be based on your sale price and if you have a high sale price then they can't come and say your house is valued less based on average price increases over the last xx years and basing that on the lower sale price.

If you sold next year at £150,000. Would you as a purchaser like to see a £5,000 discount to the last sold price or a £10,000 premium to last years price?

It's a gamble really. It's up to you.

MrRee_2

Buy at the lower price .... why pay more than you have to to the Taxman?

As for timing - I think it's a good time to buy .... you are selling and buying so it's pretty much a neutral decision.

My concern would be that New Builds are always overpriced (in my opinion) - certainly when a Part Exchange is involved. It is easier, yes - like those who P/Ex cars ..... but, the costs on houses are so much higher.

If it is to be a long term home then forget all about House Prices of the future and past ..... in 20 years or more they will mean nothing to where we are now.

james3333

HappyMJ wrote: »

I would go for the higher prices. It'll cost you £150 in duty more but future purchasers of your property will see you have paid £155,000 for it. The mortgage company will also base mortgage offers on £155,000. It may not make much difference but I think it will be easier to sell later on. The figures from Zoopla, Mouseprice, etc will be based on your sale price and if you have a high sale price then they can't come and say your house is valued less based on average price increases over the last xx years and basing that on the lower sale price.

If you sold next year at £150,000. Would you as a purchaser like to see a £5,000 discount to the last sold price or a £10,000 premium to last years price?

It's a gamble really. It's up to you.

Cheers for this...... seems there are a few things to weigh up here.....any more input anyone can add?

grimsalve

If the newbuild is part of a development then have you checked how much the other houses have sold for recently?

james3333

there are only 14 houses on the 'site'.....the other that sold is a bigger house and sold for 170k

sunshinetours

The higher prices offered will be to create the illusion that prices are not being discounted whilst they sell the rest of the development. If thinking short term definitely go for the higher prices for reasons stated above.
This also highlights that Zoopla etc are not a "bible" when it comes to pricing and why there can be serious deviations

grimsalve

james3333 wrote: »

there are only 14 houses on the 'site'.....the other that sold is a bigger house and sold for 170k

How much bigger?

If it were me I'd go for the 140/115 deal - who knows what will happen in the future.

TBH, I'm surprised a builder is offering a part-ex deal like that (mine insisted on a two-thirds/one-third split a couple of years ago). Tough times.

Conrad

James - isn't there a danger you are over thinking this? You know your local market and values, stop thinking about resale value in relation to current purchase price - owning a home is about very much more than money tickets. Being so fixated on money can spoil a person - I've seen this happen several times.

You have about 30,000 days on Earth, enjoy.